Common Legal Misconceptions

Owning an LLC does not grant any visa or immigration status. These are entirely separate legal processes.

You can own a U.S. company without having permission to live or work in the country. Certain visas like E-2 require substantial investment and active business operations—but the LLC itself is not what qualifies you. The visa application is a separate process through USCIS.

Delaware makes sense for specific situations: venture-backed startups, complex equity structures, or plans to go public. For simpler businesses, it can be overkill.

If you operate only in one state, forming your LLC there is often simpler and cheaper. You avoid paying fees in two states and dealing with foreign qualification requirements. Delaware's advantages matter most when sophisticated investors or legal structures are involved.

U.S. LLCs have tax obligations. The specifics depend on your residency, where you conduct business, and whether you have U.S.-sourced income.

Tax treatment varies based on how the LLC is classified (disregarded entity, partnership, or corporation) and your personal tax situation. Non-residents may still owe U.S. taxes on certain income. Professional tax advice is essential—generic information cannot replace it.

Most contracts are valid without notarization. A contract requires offer, acceptance, consideration, and mutual intent—not a notary stamp.

Notarization adds authentication but is only legally required for specific documents like real estate deeds in some jurisdictions. Standard business contracts, NDAs, and service agreements do not need notarization to be enforceable.

NDAs only protect information that qualifies as confidential under the agreement. Public information and independently developed knowledge cannot be restricted.

Courts will not enforce overly broad confidentiality clauses. Information that is already public, was known before the NDA, or was independently developed by the other party falls outside protection. Define your confidential information clearly and specifically.

Contractors have different protections than employees—but they are not unprotected. Contract law, payment rights, and intellectual property protections still apply.

Contractors can enforce payment terms through contract law, retain intellectual property rights if the contract allows, and sue for breach. What they lack are employment-specific benefits: unemployment insurance, workers' compensation, and employer-provided health coverage.